2010 Program Guidelines
REDEVELOPMENT AUTHORITY OF THE COUNTY OF LANCASTER
202 North Prince Street, Suite 400, Lancaster, PA 17603
Phone: (717) 394-0793 Fax: (717) 394-7635
2010 Rental Housing Program Guidelines Page 2
Urban Growth Areas are areas designated as appropriate for future development and
includes a borough at its center, developed portions of townships and enough
development capacity to meet future land used needs over a 25-year period without
constraining the developing market.
Buildable Lands are those areas within Urban Growth Areas which have not yet been
converted to an urban pattern and are not constrained from such development by
Designated Growth Areas are a region described in a municipal or multi-municipal
plan that has the following characteristics:
It is appropriate for future development and includes a borough or village as a
Residential, mixed use, commercial, industrial, and institutional development is
permitted or planned for.
Public infrastructure services are provided or planned for with sufficient capacity
to carry the intended density and intensity of development.
Core Reinvestment Areas include the boroughs. They are the focus of a
Reinvestment Strategy directed toward sustaining the quality of life in older
communities by maintain sound neighborhoods, viable local retail centers, expanded
employment opportunities, sound institutions, and public places, all supported by a
growing tax base.
General Reinvestment Areas are Developed Areas within Urban Growth Areas that
are located outside the Core Reinvestment Areas. General Reinvestment Areas can
also participate in the benefits of the Reinvestment Strategy. However, many of the
more recent developments fall into this land category. Therefore, the capacity for
reinvestment in terms of abandoned and underutilized properties, or properties
available for conversion, is not as high as in the Core Reinvestment Areas.
Concentrated Building Areas are presently undeveloped land, within an Urban
Growth Areas, that have the physical characteristics and available infrastructure to
accommodate more intense development. Concentrated Building Areas are Buildable
Lands that can accommodate more intense development patterns due to the availability
of the following infrastructure:
Utilities – located within water and sewer areas
Access – has ready vehicular access to the upper level transportation network
and potential public transit service.
General Building Areas are presently undeveloped land within an Urban Growth Area
that has less available infrastructure (water, sewer, transportation access) than
Concentrated Building Areas and thus may not be appropriate for the highest intensity
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Projects must be located within Lancaster County, outside the political boundaries of
the City of Lancaster. Projects must be located on Buildable Lands within Designated
Growth Areas as identified in the Lancaster County Growth Management Element
Priority will be awarded to projects that involve infill development, redevelopment
of existing sites, re-use of vacant buildings, and re-use of underutilized buildings
Priority will be awarded to projects that have an average net density of 7.5
dwelling units per acre.
Priority will be awarded to projects that are located in the Reinvestment Areas
(Core Reinvestment Areas and General Reinvestment Areas) and Buildable
Lands Areas (Concentrated Building Areas and General Building Areas).
Priority will be awarded to projects that include development patterns that reduce
the need for automobile travel and enhance neighborhood connectivity.
Priority will be awarded to a project located in an area that does not have an
existing subsidized project of similar type (i.e., elderly or family housing) and size
(25% smaller or larger than the proposed project).
TYPES OF PROJECTS
The project may be permanent housing available to the general public in accordance
with all federal, state and local laws (i.e., fair housing and accessibility) or transitional
housing for special needs populations. Transitional housing may only be developed by
a non-profit organization whose primary purpose is to serve the types of populations
who will be housed by the project.
Projects must have at least 10 rental units (except for projects proposed by certified
Community Housing Development Organizations or for projects proposing special
Projects must provide new units or substantially improve the quality of existing units to
provide a permanent, decent, safe and sanitary structure for year round residential use.
Priority will be awarded to projects proposing family housing in which the majority
of the units will have 2 or more bedrooms per unit.
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OCCUPANCY AND AFFORDABILITY
Projects are required to be affordable to and to be occupied by lower income
households. The period of affordability is subject to certain program regulations but in
no instance shall the period of affordability be less than the term of the Redevelopment
At least 20% of the units must be affordable to and occupied by households earning
less than 40% of the Lancaster County median income. At least an additional 40% of
the units must be affordable to households earning less than 50% of the Lancaster
County median income.
The balance of the units shall be affordable to households earning less than 60% of the
Lancaster County median income.
The affordability requirements shall be applied equally to each of the different types of
units in a project.
In no instance may any rent exceed the Section 8 Fair Market Rent.
Developers shall use the Section 8 Utility Allowance Schedule to determine the
allowance for tenant paid utilities.
Priority will be awarded to projects proposing to serve a greater percentage of
40% and 50% households than the minimum levels established above.
Priority will be awarded to projects proposing units to be affordable to and
occupied by households with incomes less than 30% of the Lancaster County
median income. To receive priority under this category, the 30% units are in
addition to the minimum number of required 40% and 50% units.
Exhibit B lists the current Lancaster County median income.
Exhibit C lists the maximum rents based on median income and Section 8 Fair Market
Exhibit D is the current Section 8 Utility Allowance Schedule for tenant paid utilities.
Rental Housing Program funds are limited and are not intended to be the primary
funding source for a project. The purpose of the program is to provide a subsidy to the
project so that the project rents will be affordable to lower income households.
The maximum subsidy available to a single project will not exceed $1,000,000.00.
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The term of the Redevelopment Authority loan shall not exceed the term of any priority
loans. In no event shall the term of the Redevelopment Authority loan exceed thirty
The minimum interest rate is one percent (1%).
The HOME Loan will mature not later than thirty-one (31) years from the HOME
closing date (the Maturity Date) and will accrue interest annually in arrears, at a
per annum interest rate equal to one percent (1%). Beginning on the first day of
the first year after construction completion through the Maturity Date of the
HOME loan, there shall be due no payments of principal or interest. However,
interest shall accrue on the unpaid principal balance of the HOME loan. At the
end of year thirty-one (31), borrower shall pay in full all accrued interest and the
unpaid principal balance of the HOME loan.
The terms of all financing for all sources of funds are subject to review and
approval of the Redevelopment Authority.
Priority will be awarded to projects requesting less than the maximum subsidy
available from the Redevelopment Authority.
Developers are encouraged to utilize firms certified as a Minority Business Enterprise or
Woman’s Business Enterprise as part of the project development team. The
development team members include developer, architect, attorney, general contractor
and management agent.
Priority will be awarded to projects proposing the use of five to ten percent (5 -
10%) of certified MBE/WBE firms as part of the development and construction
teams. A copy of the MBE/WBE certification must be included with the
Developers are encouraged to solicit the involvement of a local tax-exempt organization
in the development and ongoing operation of the project throughout the compliance
Priority will be awarded to projects which demonstrate that a local tax-exempt
non-profit organization has a significant commitment and investment in the
development and ongoing operation of the project.
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Projects must comply with all applicable federal, state and local building and
Projects must comply with Redevelopment Authority design standards and
minimum room sizes, local code and accessibility standards, environmental due
diligence, Rental Housing Program guidelines, regulations of the HOME
Investment Partnerships Program and/or the Community Development Block
Grant Program, and underwriting, layering and marketing guidelines.
Additionally, all projects must comply with the Fair Housing Amendments Act of
1988, Section 504 of the Rehabilitation Act of 1973, as amended, and the
Americans with Disabilities Act of 1990, as applicable.
Projects must limit commercial space in the project to no more than 49% of the
gross area of the project. Commercial tenants are subject to Redevelopment
Authority approval. Program funds can not be used in the development of
Exhibit E lists specific Design Standards applicable to projects being funded through the
Lancaster County Rental Housing Program.
Construction costs will be reviewed for cost reasonableness on a per-unit as well as a
per square foot basis for the type of housing being proposed.
General Requirements are limited to 6% of the construction cost excluding the
cost of builder’s overhead and profit, bond premium and construction
Builder’s Overhead is limited to 2% of the cost of land improvements, general
requirements and structures cost. Builder’s Profit is limited to 6% of the
construction costs, excluding builder’s overhead, bond premium and construction
A Construction Contingency account shall be established to cover additional
construction costs that may arise from unforeseen circumstances during
construction. For new construction projects, a minimum 5% contingency account
shall be established. For substantial rehabilitation projects, a minimum 10%
contingency account shall be established.
The general contractor shall be required to post a 100% Payment and
Performance Bond. The bonding company is subject to approval of the
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All other costs will be reviewed for cost reasonableness on a per-unit as well as a per
square foot basis for the type of housing being proposed.
All projects will be subject to review under the normal underwriting criteria of the
Redevelopment Authority. Where the Redevelopment Authority feels that a project as
proposed is not feasible or does not meet these criteria, the applicant will be so notified
and requested to provide additional information/clarification as appropriate. If the
applicant is unable to meet the objections of the Redevelopment Authority, the project
will not be considered for participation in the 2010 funding round.
MEDIAN INCOME = $67,400 (family size – 4)
% Median 1 2 3 4 5 6
30% 14,150 16,200 18,200 20,200 21,850 23,450
40% 18,850 21,550 24,250 26,950 29,100 31,250
50% 23,600 26,950 30,350 33,700 36,400 39,100
60% 28,300 32,350 36,400 40,450 43,700 46,900
2009 MAXIMUM RENTS (including utilities)
Average # of 2010 Section 8
# of Bedrooms Occupants 30% Rent 40% Rent 50% Rent 60% Rent FMR
0 1.0 353 471 589 707 531
1 1.5 379 505 631 758 630
2 3.0 454 606 758 909 776
3 4.5 525 700 876 1,051 985
4 6.0 586 781 977 1,172 1,034
Unit and Room Sizes
Space 1 & 2 BR Units 3 or more BR Units Least Dimension
Living Room 140 * 150 * 10' 0"
Dining Room 80 * 100 * 9' 0"
Living/Dining 180 * 200 * 10' 0"
Bedroom 1 120 * 120 * 10' 0"
Bedroom 2 100 * 100 * 9' 0"
Bedroom 3 + NA 90 * 9' 0"
* NOTE: Only the usable area (furnish-able area) of a room will be included in calculating the square
footage of a room or space – that is, areas of the room meeting the Least Dimension requirement.
LIGHT AND VENTILATION Every habitable room shall be provided with natural light by means
of a window, glazed door or skylight facing directly to the outdoors. A glazed area of at least 8% of
the floor area of the space shall be provided. Windows in habitable rooms below grade must be
above the adjacent outside grade level and must comply with appropriate egress requirements.
Natural ventilation shall be provided to all habitable rooms by means of an operable window, door or
skylight facing directly to the outdoors. An operable area of at least 4% of the floor area being
ventilated shall be provided.
Light and ventilation requirements will be calculated using the entire square footage of the room or
space – for combination spaces such as living/dining areas, the light and ventilation requirement will
be 8% and 4% (respectively) of the square footage of the living/dining area.
STORAGE Projects shall provide for the storage needs of tenants as follows:
· a closet of at least ten (10) square feet in each bedroom;
· a closet of at least ten (10) square feet for general storage; and
· a linen closet of at least three (3) square feet located in close proximity to the bathroom.
RECREATION Projects shall provide outdoor recreational and play space when public
playgrounds or facilities are not close to the development.
FIRE, PANIC AND SAFETY Projects shall comply with the regulations of the Pennsylvania
Department of Labor and Industry.
OTHER BUILDING CODES Projects shall comply with the State-mandated International
Building Code (IBC).
SUSTAINABLE ENERGY REQUIREMENTS All residential equipment and appliances must be
“Energy Star” rated. All bathroom sinks must have low flow aerators of 1.5 gallon per minute or less.
All shower heads must not exceed 1.6 gallons per minute (versus the current standard of 2.5 gallons
per minute). All lighting fixtures shall be fluorescent type or provided with compact fluorescent lamps.
OTHER REQUIREMENTS All applicable federal, including but not limited to the Fair Housing Act
Design and Construction Accessibility requirements and Section 504 of the Rehabilitation Act of
1974; state; and local codes or ordinances must be met.